Where do you go to buy, sell, or trade non-fungible tokens (NFTs)?
The answer to this question has changed over the last few months, as new entrants have entered the market and quickly become major players in this field.
One of the newest entrants, OpenSea, was founded just over 6 months ago, yet it now boasts an impressive 1M user and takes in millions of dollars in monthly sales.
This post will walk you through how to get started on OpenSea as quickly as possible, whether you’re looking to buy your first NFT or sell your most prized digital collectible.
The Birth of Non-Fungible Tokens NFT
In other words, one digital asset can not be copied or cloned.
This means that a blockchain can store information on one-of-a-kind things like art pieces, collectibles, and virtual goods in a secure way that guarantees they are original and authentic.
Not Replaceable OpenSea was founded in January 2018 and is the world's first and largest NFT marketplace for non-fungible tokens, which includes digital collectibles, gaming items, and other virtual goods built with blockchain technology.
The birth of this new type of token is exciting because it creates a whole new world of ownership possibilities. For instance, imagine you were able to own an Eiffel Tower replica, something you could hold in your hand and share with your friends.
Now take this idea one step further: What if that replica could only ever belong to you? That's the promise and power behind NFTs: Digital assets that have scarcity value and always belong to someone.
Collectibles NFT
OpenSea is a blockchain-based digital collectibles marketplace that allows people to buy and sell digital items like CryptoKitties.
The company was founded in January 2018 and is backed by Andreessen Horowitz, Union Square Ventures, Y Combinator, and several other investors.
It has raised $6 million from notable venture capital firms, and its site hosts more than 50,000 different types of non-fungible tokens for sale.
For example, you can purchase an original illustration or painting created by an artist on OpenSea for anywhere from $10-$25,000 USD. As mentioned earlier, these are not fakes--this is the real deal!
Gaming Items NFT
In order to make a purchase on OpenSea, you will need Ethereum (ETH) and an ERC-721 compatible wallet. We recommend using MetaMask, which is available as a browser extension.
Before you can buy anything, you'll have to register your address by entering your public key and verifying it. Once that's done, you can search for items by name or on our interactive map of all active auctions.
If you're interested in an item, click the thumbnail and then place your bid.
It costs 1 ETH per bid, so keep this in mind when making a purchase! When bidding ends, the auctioneer determines whether or not there are any other bids that are higher than yours.
If so, they announce the winner, send them their funds, and award them their prize.
If there are no other bids, then they either withdraw their listing from the site or resell it until there are new bidders.
The best part about buying on OpenSea is that since each NFT token has its own unique ID number, if someone else purchases the same item you were trying to win during an auction then you automatically win it for yourself at the current price level.
The last thing I want to mention is that if someone sends Ethereum from their account to your contract address and triggers one of your digital goods with blockchain technology, then whoever sent it will automatically be awarded ownership of said digital good.
Customizable Digital Items NFT
Non-fungible tokens (NFTs) are digital collectibles that can be traded and exchanged on a blockchain.
Unlike cryptocurrencies like Bitcoin or Ethereum, which have their own independent value outside of the blockchain platform they run on, digital collectibles such as CryptoKitties are only worth what someone is willing to pay for them.
The benefit of trading in NFTs is that each one is unique and can not be duplicated or reproduced - unlike physical items where you could make an infinite number of copies.
For instance, if you find a rare piece of art at a garage sale, it might not be practical to try and resell it at another garage sale because there would be no guarantee that another person would want it.
However, if you found that same piece of art tokenized on OpenSea, then you know for sure that someone else will want it.
CryptoKitties – The Original Blockchain Game NFT
CryptoKitties was one of the first mainstream blockchain games. In CryptoKitties, players collect and breed digital cats. The game was a viral success and quickly became Ethereum’s most popular smart contract.
More than $25 million worth of ETH has been traded in the game so far.
The ERC-721 standard defines non-fungible tokens that are unique, and each have their own set of attributes and features.
OpenSea is an ERC-721 compliant token market where any user can buy or sell rare digital goods like art, apparel, collectibles, or other virtual items like in-game assets from Cryptokitties or Decentraland.
Tokens on the platform are secured by cryptoeconomics and enforced via open source software. Learn more about how to start buying, selling, and trading tokens on OpenSea here! First off, make sure you're verified.
Users will be verified automatically for purchases under 0.5 ETH worth of tokens, but larger purchases require verification (which includes filling out an ID form).
You'll also need to sign up for a wallet address, which you can use to send funds straight from your browser or mobile app (like MetaMask).
Origin – A New Market For Virtual Goods on NFT Ethereum
OpenSea is a new market for virtual goods on Ethereum. It allows users to buy and sell digital assets such as gaming items, video game skins, crypto collectibles, and more.
It's an easy way for people who want to buy and sell virtual goods without having to go through an auction. The best part?
OpenSea is decentralized and built on Ethereum - meaning it has no third-party interference. Users can trade their NFTs securely while receiving payments in ETH. Users are able to freely list their item at whatever price they want, making it easier than ever to find the perfect price.
Since launching in January 2018, OpenSea has had over 300,000 downloads of its mobile app and tens of thousands of daily active traders across all devices.
Additionally, we have facilitated over 3 million trades (and counting) worth tens of millions of dollars. We offer both fiat-to-crypto and crypto-to-crypto trading, giving users the flexibility to quickly and easily move between different currencies.
One thing that sets us apart from other markets is our support for developers.
We provide tools that make it easy for anyone to set up a store within minutes using smart contracts with or without webpages or user interfaces. All you need is one image and description of your product!
The Problem With Existing Token Marketplaces NFT
Existing token marketplaces have been designed for tradable tokens and don't have a design for non-fungible tokens like digital collectibles, gaming items, and other virtual goods built with blockchain technology.
This has led to frustration from buyers as it can be hard to find items and sellers.
Sellers also face challenges on these exchanges because they can't control how their item is priced or how long their listing will be up.
OpenSea solves both of these problems by creating a new type of exchange that is optimized for managing the trading of non-fungible tokens.
OpenSea allows developers to build an unlimited number of marketplaces around any kind of good.
Allowing more choices in what you sell and where you sell it while making your trades more visible and easier than ever before!
Building a Marketplace That Solves These Problems NFT
We built OpenSea because we wanted to solve some of the biggest problems people face when trying to buy and sell digital assets.
We're starting by focusing on non-fungible tokens (NFTs) - a broader term for digital assets, which includes collectibles, gaming items, and other virtual goods built with blockchain technology.
These are items that are difficult or impossible to replicate: every CryptoKitty is different, for example. But the truth is, there’s no perfect platform for trading these things online today.
There’s no one place where you can browse through thousands of individual listings from all over the world in order to find what you’re looking for.
And even if you do manage to find what you want somewhere else, then you’ve got a new set of challenges like figuring out how to pay in crypto and whether it will be delivered securely.
On OpenSea, buyers can use Ether, the native token of Ethereum, or any ERC20 compatible token to purchase NFTs without worrying about wallets or gas prices Sellers set their own prices and receive 100% of the sale proceeds for any item listed on our site.
When an offer is accepted, sellers also have the option to deliver their item directly inside a secure messenger called MetaMask within 30 seconds. The end result?
To start buying and selling on OpenSea, you can sign up for an account here. Once you're signed in and have a wallet, you can navigate through our catalog of digital items and follow these four steps:
1) Browse our catalog of digital items
2) Click Buy or Sell next to the item you want
3) Choose your wallet (ether or WETH) if applicable
4) Complete transaction ! Your new item will now be available in your library on OpenSea, where you can keep track of them all and transfer them between wallets using our transfer function.
It's that simple! The first time you buy something on OpenSea, we'll prompt you for two things - your email address and password. Enter those and click Sign Up.
Next, enter your email address again to confirm it's correct. We recommend setting up two-factor authentication via SMS or Authy to protect access to your account from third parties.